Severe Cut in Budget of Drugs Threatens Poor at Major AP Government Hospitals
Apart from medicines, diagnostic services are also facing disruptions. In some hospitals, patients are being asked to pay for X ray films and other consumables. CT scan services are reported to be irregular, increasing the burden on patients who rely on free healthcare.

Kurnool: A steep reduction in the budget for drugs at major government hospitals across Andhra Pradesh for the financial year 2026 to 27 has triggered a major concern among healthcare professionals. They fear that patient care, especially for the poor, will be severely affected in the coming months.
As per the latest allocations, several teaching and general hospitals have witnessed cuts ranging from 35 per cent to over 50 per cent, compared to the previous year. The move comes at a time when many hospitals are already grappling with shortages of essential medicines and diagnostic facilities.
Doctors say the impact is already visible on the ground. Basic medicines, such as calcium tablets, anti-hypertensive drugs and other routine drugs are in short supply in several institutions, including Kurnool Government General Hospital, RIMS Ongole, RIMS Kadapa and ACSR Government Hospital, Nellore. In many cases, patients are being advised to purchase medicines from private pharmacies.
Savithramma, a patient from Yemmiganur, who visited Kurnool Government General Hospital on April 15, said, “The doctor gave me a prescription. But the hospital did not have these medicines. I have been asked to buy the medicines from outside. I came to the Kurnool government hospital because I cannot afford private treatment.”
Apart from medicines, diagnostic services are also facing disruptions. In some hospitals, patients are being asked to pay for X ray films and other consumables. CT scan services are reported to be irregular, increasing the burden on patients who rely on free healthcare.
Doctors in Vijayawada said delays in supply have become frequent. An orthopaedic doctor said, “We are submitting indents for essential medicines repeatedly. But there is a delay in procurement. We are forced to ask patients to bring medicines from outside, which defeats the purpose of public healthcare.”
Hospital administrators admit they are struggling to manage with reduced funds. Dr Venkateswara Rao, Superintendent of RIMS Kadapa, said, “All hospitals under the Directorate of Medical Education have faced cuts in budget. Not only drugs, allocations for surgical items and consumables have also been reduced. We have not been informed about the reasons.”
The situation is worse at the grassroots level. The state has 175 community health centres (CHCs) that cater mainly to rural populations. A gynaecologist from a centre in Kurnool district said, “We have run out of some injections used during deliveries. Most patients cannot afford to buy medicines from outside.”
Officials from the Andhra Pradesh Medical Services and Infrastructure Development Corporation said procurement is limited to the approved budget. “We act based on indents. But purchases are restricted by allocations. There is always a gap between demand and supply,” an official said.
Doctors say allocations do not reflect actual requirements. “Detailed indents are submitted every year based on patient load. Ignoring them and reducing budgets is affecting services,” a senior doctor said.
Doctors in Anantapur district warned that drug stocks in some hospitals may last only another 10 days. “If supplies do not arrive soon, the situation could become unmanageable,” a doctor said.
* Budget allocation for major hospitals in rupees
Hospital – 2025–26 Budget – 2026–27 Budget – Percentage Decrease
RIMS Kadapa – 2,95,97,106 – 1,79,40,933 – 39.4 per cent
KGH Visakhapatnam – 7,76,21,103 – 3,66,44,012 – 52.8 per cent
GGH Vijayawada – 5,47,53,300 – 2,80,27,844 – 48.8 per cent
GGH Kurnool – 4,32,80,917 – 2,12,64,776 – 50.9 per cent
ACSR Nellore – 2,13,80,344 – 1,27,17,010 – 40.5 per cent
GGH Guntur – 7,08,67,417 – 3,67,38,379 – 48.2 per cent
GGH Tirupati – 3,33,98,529 – 1,94,23,582 – 41.8 per cent
RIMS Ongole – 2,61,77,923 – 1,50,35,980 – 42.6 per cent
GGH Kakinada – 5,47,03,976 – 3,40,57,872 – 37.7 per cent
GGH Anantapur – 2,88,32,909 – 1,58,30,892 – 45.1 per cent

